Ecometals Limited

Ecometals Limited

July 04, 2011 12:26 ET

Ecometals Announces Acceleration of Diamond Drilling Program, Rio Zarza Gold Project Ecuador

TORONTO, ONTARIO--(Marketwire - July 4, 2011) - Ecometals Limited (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ) -

Ecometals Limited is pleased to announce an acceleration of its diamond drilling programme on the Rio Zarza Gold Project in Southern Ecuador as a result of field observations over a two week visit by Dr. Stuart Simmons, Expert Epithermal Consultant.

Dr. Simmons' Key Findings Support Company's Exploration Model

  • Artisanal alluvial mining of locally derived Au upstream from FdN demonstrates Au source within the project area
  • Abundant hydrothermal quartz float showing banded veins & acid sulphate alteration indicative of shallow level epithermal mineralization
  • Intervals of geochemically anomalous Au and indicator elements in drill core from 2010 programme
  • Same volcano-sedimentary basin as FdN and in close proximity
  • Mineral textures and assemblages of modern geothermal systems analogous to older epithermal type mineralization, which can be used as exploration guidelines at Rio Zarza.

Exploration Programme Going Forward

Following Dr. Simmons' recommendations, the Board of Directors has approved an expansion of the Company's budget at Rio Zarza to achieve accelerated drilling of more deep basin targets, which will commence this month. Total expenditure in Ecuador this year inclusive of Rio Zarza will therefore now be almost $4m. The expanded programme will add another diamond drill rig with deep drilling capacity to 1200m depth.

Based on compilation of previous data and insights provided by Dr. Simmons, the planned exploration programme for 2011 will include:

  • Thin section petrography and X-Ray Diffraction (XRD) for alteration mineral identification and paragenesis
  • Detailed gravity survey to map block faulting structures in the Misahuallí-Suarez Basin
  • Drill targeting based on IP Chargeability (indicating sulphides) with more emphasis on resistivity (indicating silicification)
  • Main focus on deep drilling targets in the Misahuallí-Suarez basin, and continued shallow drill testing of targets hosted by the Zamora Batholith for eroded roots of epithermal vein style mineralization

Drilling Update

Three shallow holes have recently been completed to date to 150 to 200m depth targeted on IP chargeability and resistivity anomalies in the Zamora Batholith.

Samples for geochemical analysis have been dispatched to the ALS Chemex laboratory and results are expected by the end of July.

CEO Comment

Chief Executive Officer William Lamarque said, "The independent assessment of exploration at Rio Zarza by Dr Stuart Simmons has validated the exploration approach used by Ecometals, increased our geological knowledge, and identified new conceptual targets for different styles of mineralization. Based on his recommendations, the Board of Directors feels confident in increasing the budget to aggressively further explore the Rio Zarza Gold Project."

Qualified Person

SR McMullan, P.Geo, Vice President of Exploration for Ecometals Limited, is a qualified person according to National Instrument 43-101 definition and has prepared the technical information included in this press release. Drilling, logging, sampling and dispatch is under the direct supervision of the Qualified Person and follows industry standard QA/QC protocols.

Sampling and Analytical Protocol

Core is transported from the drill site to the Rio Zarza camp, where RQD, geological logging and sampling for geochemical analysis is conducted. Samples are composited over 2m intervals from diamond saw cut half core.

Samples are despatched using full chain of custody documentation to the ALS Chemex sample preparation laboratory in Quito and analysed at the ALS Chemex laboratory in Lima, Peru. ALS Chemex is an ISO certified laboratory.

Control protocols include industry-standard insertion of control samples (blanks, internationally Certified Reference Material, and field duplicates) at 10% frequency.

About Ecometals

Ecometals Limited is a Canadian TSX Venture Exchange listed mineral exploration and development company focused on mineral resources in Latin America.

Safe Harbor Statement: Statements contained in this release that are not historical facts are forward-looking statements which involve risk and uncertainties, which could cause actual results to differ materially from those expressed in forward-looking statements.

These include risks relating to changes in economic or environmental conditions and the company's ability to execute its business model and strategic plans. The company relies on litigation protection for forward-looking statements.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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